The Department of Health and Human Services’ Office of Inspector General today issued a report identifying vulnerabilities in the hospital wage index system for Medicare payments. “As a result of these vulnerabilities, wage indexes may not always accurately reflect local labor prices and, therefore, Medicare payments to hospitals and other providers may not be appropriately adjusted to reflect local labor prices,” the report says. The Centers for Medicare & Medicaid Services uses area wage indexes to adjust hospital payments annually to reflect local labor prices. CMS calculates each area’s wage index based on wage data submitted by acute care hospitals in their Medicare cost reports. OIG issued a number of recommendations for addressing the vulnerabilities.

Related News Articles

Headline
The Centers for Medicare…
Headline
"Medicare for All" sounds like a good idea ... but we have a better way to meet today’s challenges, create a healthier tomorrow – and advance health in America.
Headline
Beginning June 11, hospitals, physicians and other eligible providers may submit notices of intent to apply to participate in the Jan. 1, 2020 start date for…
Headline
The Centers for Medicare…
Headline
Sen. Bernie Sanders, I-Vt., and 14 of his Democratic colleagues today introduced the Medicare for All Act of 2019, legislation that would create a national…
Headline
“Medicare for All” is a “raw deal” for the American people and taxpayers, Senate Majority Leader Mitch McConnell, R-Ky., said today during a plenary session at…